Compal Reportedly to Start Notebook PC Pilot Production in Vietnam

Compal Electronics Corp in Taiwan will likely start pilot production at its first Vietnamese factory in June this year, according to the company`s components suppliers.

They expect to start volume production sometime next year once the company completes verification in the third quarter this year with customers on the second NB PC model developed for production at the South East Asian factory. Volume production target is set at 1.5 million initially.

In lighting of rising production costs in mainland China, Compal, like many of its Taiwanese peers, have opened factories in Vietnam. The company began its Vietnamese factory plan two years ago and has convinced some 50 Taiwanese components suppliers to come onboard.

However, Compal has delayed volume production until next year after sensing growing instability in the Vietnamese economy last year. Components suppliers said Wistron Corp, another Taiwanese leading supplier of contract computers, has suspended its project to make NB PCs in Vietnam.

The components suppliers said that Compal would unveil its second or third NB PC in July or August, at which time the company would invite prime contract buyers like HP and Dell to inspect the factory.

Compal targets shipping in 2009 32-35 million NB PCs, trying to exceed the No.1 player Quanta Computer.

Source: CENS